JHD.L WACC - Weighted Average Cost of Capital
The WACC of James Halstead PLC (JHD.L) is 8.9%.
| Range | Selected | |
| Cost of equity | 7.8% - 10.1% | 8.95% |
| Tax rate | 22.0% - 22.4% | 22.2% |
| Cost of debt | 4.0% - 4.6% | 4.3% |
| WACC | 7.7% - 10.1% | 8.9% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.63 | 0.74 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 10.1% |
| Tax rate | 22.0% | 22.4% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 4.6% |
| After-tax WACC | 7.7% | 10.1% |
| Selected WACC | 8.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| JHD.L | James Halstead PLC | 0.01 | 0.83 | 0.82 |
| ABSO.ST | Absolent Group AB | 0.2 | -0.25 | -0.22 |
| ECEL.L | Eurocell PLC | 0.41 | 0.34 | 0.26 |
| EGPRO.IS | Ege Profil Ticaret ve Sanayi AS | 0.13 | 1.34 | 1.21 |
| EPWN.L | Epwin Group PLC | 0.81 | 0.38 | 0.23 |
| LUVE.MI | Lu-Ve SpA | 0.59 | 0.83 | 0.57 |
| NMAN.ST | Nederman Holding AB | 0.41 | 0.81 | 0.61 |
| NXR.L | Norcros PLC | 0.33 | 0.74 | 0.59 |
| SOM.MI | Somec SpA | 1.32 | 0.49 | 0.24 |
| ST5.DE | Steico SE | 0.5 | 1.1 | 0.79 |
| Low | High | |
| Unlevered beta | 0.45 | 0.6 |
| Relevered beta | 0.45 | 0.61 |
| Adjusted relevered beta | 0.63 | 0.74 |
JHD.L's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for JHD.L:
cost_of_equity (8.95%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.63) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.